The Committee for Banking and Financial Disputes & Violations announces the issuance of a number of court decisions that prove the violation of individuals practicing financing activities without obtaining a license from the Saudi Arabian Monetary Authority (SAMA), that includes prison sentences and fines together.
According to the committee's Statement, some sentences includes imprisonment for six months, fines of up to 100,000 riyals, and others were fined with 100,000 riyals for violating the Companies Control Law and its Executive Regulations.
It is worth mentioning that the penalties stipulated by the Financing Companies Control Law range up to no more than 500,000 riyals and imprisonment for no more than two years or one of these two penalties. Among the most prominent violations practiced by unauthorized persons is the financing of borrowers in default to enable them repay their outstanding debts to other authorized financing entities or the advertisement of dept payments. The exercise of such activities without a license from SAMA exposes them to the penalties prescribed law.